Despite a tough month prior, Wall Street is recovering this week. The previous downturn cost around $5 trillion in investor wealth. Yet, the longevity of this improvement is uncertain as indexes struggle to maintain peaks. Today’s challenge lies in the quarterly “Triple Witching” event for Wall Street to prove its resilience.
“Triple Witching occurs on the third Friday of March, June, September, and December when index futures, index options, and stock options contracts all expire simultaneously during the last hour of trading. Previously known as Quadruple Witching with single-stock options expiration, the term was dropped after their discontinuation in 2020.”
Traders adjust or close positions on stocks or index options during certain events, causing unusual price movements. Stocks with lower market cap and high derivative volumes may see bigger changes. Today’s Triple Witching holds significance amid fragile Wall Street sentiment, as traders may exploit the recovery to exit positions.
The last triple witching event in December 2024 saw benchmark indices rising, showing the market’s potential for positive reactions despite unusual price changes. Upcoming instances in 2025 are set for June 20, September 19, and December 19, offering more opportunities for significant market movements.
Sources News From Various Digital Platforms, Websites, Journalists, And Agencies.
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